Loss of Income is the reduction in business earnings or revenue suffered by the insured, whether or not it is covered under a policy. Insurance policies may provide coverage for loss of income arising from specified insured events, such as property damage, cyber incidents, or operational disruptions, typically within business interruption or contingent business interruption coverage. When covered, indemnity is generally calculated based on historical financial records (such as prior year earnings or projected profits) and is subject to the agreed indemnity period, waiting periods, and policy sub-limits. The distinction between actual loss of income suffered and covered loss of income (the portion meeting policy conditions and definitions) is critical to quantifying claims.
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